The Enforcement Directorate (ED) on Monday said it has attached movable and immovable properties worth Rs 31 crore in a bank fraud case relating to Zylog Systems Ltd and others.
The properties — one building, five flats and a fixed deposit of Rs 1 crore — attached under the Prevention of Money Laundering Act, 2002 (PMLA) in a bank fraud case have been linked to M/s Zylog Systems Ltd, Chennai and others.
In a statement issued here, the ED said it initiated investigation under the provisions of PMLA on the basis of an FIR lodged by Central Bureau of Investigation (CBI), Bengaluru against Zylog Systems; Sudarshan Venkatraman, the then Chairman & Chief Executive Officer; Ramanujam Sesharathnam, the then Managing Director & Chief Operating Officer; and others.
The CBI had registered the FIR based on a complaint from Dena Bank, T. Nagar Branch here about these persons floating fictitious shell companies Woodbridge Technologies, Effica Systems, Aditicon Services and others and appointing the employees of Zylog Systems as directors.
The accused created fictitious invoices towards purchase of software/hardware in the name of these companies and were used to avail a loan of Rs 100 crore from Dena Bank and the same was defaulted in repayment.
The ED said investigations under the provisions of PMLA revealed that the said firms had also defaulted in repayment of bank loans availed from Andhra Bank and Union Bank of India collectively to the tune of Rs 110 crore.
According to the statement, investigations under PMLA so far have resulted into identification of one building, five flats and fixed deposit of Rs. 1 crore involved in money laundering valued at Rs 31 crore.